Scoop: First look at Louisiana Gov. Jeff Landry's package of tax bills
Add Axios as your preferred source to
see more of our stories on Google.
Photo illustration: Axios Visuals. Photo: Tom Wiliams/Getty Images
Gov. Jeff Landry is on a mission to sell Louisiana on his new tax plan, which he hopes state lawmakers approve in a special session next month.
Why it matters: If approved by state lawmakers and, later, voters, the plan would reduce the state's income tax and increase sales taxes on a long list of goods and services.
Between the lines: The public started to get a closer look at Landry's plan in a state House committee meeting Tuesday, but Landry has also shared a package of 10 draft bills with every state legislator, his spokesperson tells Axios New Orleans.
- Landry has not yet made those drafts public, his spokeperson says, "because some things are still changing in them."
- Axios New Orleans obtained copies of all 10 draft bills and is sharing them below.
Worth noting: Though Landry's drafts could change as they work their way through the statehouse, his spokesperson said she was not aware of any pending "major" changes.
Follow the money: Louisiana's current tax rate is 1.85% on the first $12,500 in income; 3.5% on income between $12,500 and $50,000; and 4.25% on everything $50,000 and above.
- Landry's plan would simplify that structure to a 3% tax rate for everyone who makes more than $12,500.
- Sales taxes would expand under Landry's plan, covering things like lobbying, digital products like online streaming services, and what he described as many "luxury" services like car washes, pet grooming and sitting, and personal fitness training. Services for repairs to cars, farm equipment and home appliances would also be newly taxed.
- Among other changes in Landry's plan are the elimination of taxes on prescriptions, a flat corporate tax rate at 3.5% and raising the standard deduction to $12,500.
What he says: "This plan will provide an immediate increase in take-home pay for every Louisiana taxpayer," Landry said in an Oct. 1 press conference, while also addressing a looming $700 million budget shortfall.
- His proposed changes, Landry said, mean "moving from taxing your labor to your choices."
The big picture: Landry said his plan, devised under the leadership of Louisiana Department of Revenue Secretary Richard Nelson, works toward a goal of eliminating Louisiana's income tax by 2030, following similar moves in other conservative-led states.
- "I hate income tax," he said. "I tell you, that's the most sinful tax out there."
Yes, but: Landry's plan also requires making a Republican-panned 0.45-cent temporary sales tax permanent and scrapping the state's tax break for film production.
What we're watching: Greg Albrecht, the former chief economist in the Louisiana Legislative Fiscal Office, is working up an independent analysis of Landry's plan.
- It would be released ahead of November's expected special session.
See Landry's draft tax reform bills:
- A rewrite of Louisiana's Constitutional Amendment VII, which governs taxes and revenue.
- Adjusts how certain state funds are managed.
- Property tax changes.
- Changes income tax rates.
- Repeals corporation franchise tax.
- Changes corporate tax rate to a flat tax and ends the film production tax credit.
- Updates sales tax structure.
- Taxes digital goods.
- Creates sales tax for additional goods and services.
- Severance tax rate changes.